Training Courses

FRD100: The Hunt for Fraud: Prevention and Detection Techniques

CPE credits: 7

Description: This seminar provides attendees with a general overview of basic fraud concepts, as well as a review of specific areas such as statutes and standards related to the recording, reporting, and prosecution of fraudulent activities, internal auditor responsibilities in the audit for fraud, and fraud detection and prevention techniques. Also addressed during this seminar is the classification of frauds, investigation techniques, and fraud within information technology. The seminar will incorporate several case analyses of frauds perpetrated by employees and how such frauds were identified and investigated. The seminar will also introduce and incorporate the basic concepts of forensic analysis as a means of further investigating fraudulent activities by organization personnel, third party providers, and contractors.

Audience: This seminar is intended for internal and external audit professionals, security investigators, General Counsels, Chief Security Officers, Controllers, InfoSec professionals, and anyone interested in obtaining a better understanding of and general introduction to auditing and controlling fraud with workplace environments.

Prerequisites: There is no prerequisite for this seminar.

Objectives: After completing this seminar, participants will be able to:

Provide organization decision-makers with enough information so that a business decision, consistent with policy and the entity's best interests, can be made regarding the identification and prevention of fraud
Define and explain the differences among several kinds of errors frauds and illegal acts that might occur in an organization
Increase individual fraud awareness within ongoing operations on how to minimize potential fraudulent activities from occurring
Explain the various auditing standards related to fraud and illegal acts
List and explain some conditions that can lead to frauds
Comprehend basic aspects of fraud detection
Obtain insight on fraud prevention and identifying weaknesses in internal control systems
Describe some extended procedures for finding fraud
Identify the importance of and differences between interviews and interrogations
Describe forensic accounting techniques
Identify evidence and documentary evidence
Understand the roles which people, physical environment, and observation play in the investigation of fraud

Course Outline:

Conditions & Reasons Leading to Fraud

Business circumstances requiring fraud auditing
Conditions Which Create an Opportunity to Commit Fraud
Reasons for Committing Fraud

Fraud “by the Numbers”

Fraud Statutes & Standards

General Definition of Fraud and Applicable Law
Federal Statutes
Major Codified Standards on Fraud Auditing
Fraud Audit Standards Overview

Reducing Organizational Risk

Fraud Policy
Compliance Program to Reduce Organizational Risk
Deterrence of Fraud - Audit Considerations

Auditor’s Role in Auditing for Fraud

Detection of Fraud - Auditor Responsibilities
Reporting of Fraud - Auditor Responsibilities
Reasons Why Auditors Fail to Detect Fraud
Pitfalls for Auditors Engaged in Auditing for Fraud

Fraud - Warning Signs

Personality Characteristics
Organizational Characteristics
Transactional Characteristics

Fraud Related Activities for Auditors

High-Risk Areas for Fraud

Health Care
Advance Fee Scheme
Impersonation Fraud
Receipts
Payables
Payroll
Inventories
Purchasing
Letter of Credit Fraud
"Ponzi" Scheme
Pyramid Scheme
Retail Operations
Web-based Fraud
Telephone Fraud

Auditing for Fraud: Tips & Techniques

General Fraud Audit Checklist
Fraud Detection Methods Checklist

The Fraud Audit “Process”

Reasons for Investigations

How IT Can Spot Accounting Fraud
Computerized Fraud Auditing: Crunching the Data1
How to Lock Out Fraud

The Environment for Fraud

Elements to Commit Fraud
Factors that Change Nature of Risks

Dr. Marcella's seminar is based on findings from his book, The Hunt for Fraud: Prevention and Detection Techniques, published by the Institute of Internal Auditors.

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